Baker Hughes Profits Decline, Sales Increase in 1Q
Revenues for Baker Hughes, a GE Company (BHGE) were $5.62 billion in the first quarter 2019, up four percent from a year ago, according to a company report released today.
However, the Houston-based oilfield services company’s net income was $32 million, down more than half of what it was a year ago.
“BHGE delivered a solid first quarter against a backdrop of stabilizing global oil and gas markets,” CEO Lorenzo Simonelli said in a company statement. “U.S. rig count dropped slightly less than expected, and international activity remained steady. The LNG market is very active. While the speed of the recovery varies across these markets, we see our company positioned to benefit from multiple growth drivers.”
BHGE’s Oilfield Services (OFS) segment saw a 12 percent increase in revenue year-over-year at $2.99 billion. However, this was a three percent decline from last quarter.
Simonelli attributed the quarterly OFS drop to “typical seasonal declines in volume.”
Orders for the first quarter saw a year-over-year increase of nine percent, at $5.7 billion.
Oilfield equipment (OFE) orders totaled $766 million, up 54 percent year-over-year and generated a first-quarter revenue of $735 million.
“In OFE, we delivered another strong orders quarter, winning major contracts across a number of subsea projects,” said Simonelli. “Our new approach to subsea development, Subsea Connect, continues to grain traction with customers and was central in our wins with BP on their Tortue project and Beach Energy.”
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Senior Editor | Rigzone